A closer look at the stock market's effect

APPLETON (WLUK) -- It's been a volatile few days on Wall Street, so what does that mean for people locally? We spoke with an area financial adviser to try to find out.

At the Appleton Group, CEO Mark Scheffler always has a close eye on the markets.

"Today was a wild ride. It reminds me of the roller coaster out at Bay Beach," he told FOX 11 News Tuesday.

Scheffler told us a few issues are likely behind the volatility of the markets. He said one is that the federal stimulus money that spurred the economic recovery over the last decade is leaving the economy as projects end.

"That was the thing propping up the stock market and the bond market. That goes away, there's really not a lot to support it except for the hope that earnings will continue to be good," Scheffler explained.

According to Scheffler, a second issue is interest rates. Those have stayed low over the last decade.

Scheffler told us it's not unusual for the markets to fall after a long period of growth. Often there will be a so-called 'correction' of 10%.

If you're a day trader this can mean a very rocky road, a 401K is most likely a safer bet, even so...

"It is so important for investors to understand the difference between a short-term volatile situation like we've been seeing and a real turn...When the market turns, successful investors adjust to make sure their portfolios reflect that," Scheffler explained.